New rumor market to offset the rate before the last bond auction OAT of the year this Thursday? Or preparation of minds to the inevitable? According to several sources, Standard & Poor's (S & P) may well announce "shortly" the placement of the AAA rating of France as "negative outlook". This is the first step before the lowering of the rating, the highest, enjoyed the Hexagon. "It could happen in a week or maybe ten days," said a diplomatic source, who adds that there are currently an intense reflection in this direction within the agency.

Threats from other agencies

Another source glide along this announcement should be made public on Friday, but for unknown reasons it was postponed. Ten days, S & P had "accidentally" announced the degradation of France. Soon after, she had confirmed the rating of the country and its "stable outlook". But for several weeks, the French notation is under pressure. The economic downturn makes it less credible because the objectives of reducing deficits displayed by Paris. In late October, Moody's warned that it gave three months to consider whether it should be placed on negative watch the French note.

To avoid a possible negative outlook does not result in a loss of the triple A, two possibilities. Either the economy is improving, which is unlikely in early 2012 according to OECD figures published Monday. Either the government is willing to engage in a third level of rigor, it has always hitherto excluded Valerie Précresse, Minister of the budget.

Borrowing capacity of the European small

For its part, Fitch highlighted the "risks" weighing on the French AAA he nevertheless reaffirmed. If France were to lose its triple A, the European Financial Stability Fund (EFSF) would then see its borrowing capacity significantly reduced. The "strike force" of the EFSF would be unable to respond to attacks against the markets of Italy and against Spain. "If the boss of the EFSF, Klaus Regling, announced Tuesday that the Eurogroup of leverage the fund will not reach 4 to 5, as expected, the European Central Bank remains the only credible option," concludes the source diplomatic, adding that the threat of degradation of France, "especially before the European Council on December 9 dudu, put massive pressure on Angela Merkel on the involvement of the ECB."

according to the freeeeee frenchie fries, those are assets morbleu, not liabilities, so oui rrrrr proud to have banks with plentiiiii of ze assets, not like you americains full of shiiiiity liabilitieeees....you kno wat I ze meen...

Sarkozy is on the MAginot Line to the last man...but Merkel refuses to join him on the Siegfried line...the question is do Maginot and Siegfried lines protect against the tsunami market washed in debt?

"If the boss of the EFSF, Klaus Regling, announced Tuesday that the Eurogroup of leverage the fund will not reach 4 to 5, as expected, the European Central Bank remains the only credible option," concludes the source diplomatic, adding that the threat of degradation of France, "especially before the European Council on December 9 dudu, put massive pressure on Angela Merkel on the involvement of the ECB."

The ECB retains credibility only so long as they are NOT an option. Once they become an option, their credibility goes the way of Greece, Italy, Spain...etc..

French rating misfortune definitely brings out the best 'bon mots' (witty replies) from people in here ... i'm so glad i immigrated to the UK 25 years ago where I will enjoy a AAA rating for longer, won't I ???

Seriously Barry, just put an invoice for the next incursion in a pdf and post the sucker so we don't have to put up with the drama on the MSM. We know we are getting the bill so at least give us an itemized statement.

Time Magazine is for those who can't think. CNN is for those who can't read. And CRA letter ratings are for those who can't count. In their present state France's public finances are doomed by any standard, AAA or not. But it's nothing that a stealth default through ECB printing won't solve. Imprimer!

Jimmy Cramer must listen to Tyler... After how many posts, ( by Tyler) is the " Garden Knome" , Jimmy Cramer, devoting his show to credit spreads in Europe and risk in general? Some one give that boy a dose of " HGH "! Human Growth Hormones.

Thanks TYLER, they have been running that on the news NON STOP for the last couple of days....that means that the sheeple is now getting a glimpse on the situation. Some of us who have been following events on ZH since the start have since reconverted in BUSHCRAFTING activities ! With what's coming ahead, it might come handy to learn how to fish and hunt...

I was talking to a friend living in France just 2 days ago. He told me he was shocked when the teller at the bank asked him for a whole bunch of papers just to withdraw from his savings account. Among the papers asked, his taxes receipt, and that, just panicked him enough to not only withdraw *all* the money he had there. While at it and the bank employes working on that, he called his whole family. "I didn't have to say much to convince them to take out their money, just the fact that the teller asked me for my taxes papers among others".

FYI, usually, you only need to show you bank card to access your funds...

Bank run anyone? My friend's family did proceed to their own little one, I wonder how many other people reacted likewise.